The Casino Industry Case Study Analysis
The legendary casino mogul Steve Wynn launched the most expensive resort ever built in April 2005. The resort was built on the Las Vegas strip. It was a $2.7 billion property that was designed to offer the highest conceivable level of luxury. The resort offered 2,700 rooms which included floor-to-ceiling windows, 320-thread count European linens, flat screen televisions, and marble bathrooms. The shopping arcades provide the feel of a walk down New York City’s Fifth Avenue with outlets such as Chanel, Dior, and Cartier. The property also includes a Ferrari and Maserati dealership. A Las Vegas newsletter publisher, Anthony Curtis, said, “No expense has been spared. It’s not a matter of ‘Will it be great?’ but ‘Just how great will it be?’”
Wynn’s previous venture was the Mirage Resort which was snatched up by Kirk Kerkorian’s MGM a little over five years ago. The new Wynn Las Vegas resort was a comeback that he had been planning for some time after getting rid of the Mirage Resort. He has put everything in the resort to show that he is the guy who makes the best resorts in the world.
Wynn is taking considerable risks in trying to outdo his rivals. The casino industry has shown little growth in recent revenues. The major centers of gambling such as Las Vegas and Atlantic City have shown little growth. The expansion of Native American casinos and the emerge of online gaming are factors to the decline in growth. Now casinos fell the need to sped more and more to entice more gamblers.
For many years Nevada was the only state in which casinos where allowed. Nevada still retains its status as the state with highest revenues from casinos, with revenues reaching $10.3 billion in 2004. More than half of these revenues came from casinos that are located in Las Vegas. In 1976 New Jersey pass laws allowing gambling in Atlantic City, this gave the population on the east coast easier access to casinos.